According to the Financial Times of India, Vietnam’s entry into the global pepper trading market has changed this market drastically.
The Financial Times of India on December 28 published an article stating that Vietnam’s entry into the global pepper trading market as the world’s largest pepper producer has made this market change dramatically in recent years. recent years.
In the article, Indian economic analyst Rajesh Ravi argues that factors such as Vietnam’s emergence as a pepper production market, importers switching to short-term contracts, and India’s shifting from an exporting country to an importer of this commodity, has created an irreversible but elusive trend in the pepper trading market.
Previously, India was the leading producer and exporter of pepper in the world, with an output of about 80,000-100,000 tons/year.
However, now India’s pepper production has decreased to 50,000 tons/year, while it is still the world’s largest consumer of this spice with 40,000-50,000 tons/year.
Meanwhile, according to traders, Vietnam’s pepper production is currently leading the world with about 110,000-125,000 tons/year, the yield is also leading with 1.2-1.3 tons. /ha.
In addition, Vietnamese producers also have a wise sales strategy so that their products do not flood the market, thereby keeping pepper prices from falling and making more profits from exporting this item.
Mr. Ravi assessed that the amount of pepper in sales contracts in 2010 would decrease compared to the normal level due to the impact of the economic recession.
Financial difficulties make traders want to sign short-term contracts instead of long-term contracts as in the past, while maintaining low reserves. This increases the instability of the pepper market in 2010.
According to the VNA
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